The long term outlook for the DAX at this point appears to be positive even though the Eurozone has suffered as a result of weakness in peripheral countries. Despite this, Germany has been the backbone of the European Union with strength and optimism for future economic growth likely to commence from the German economy. The ECB, a committee heavily invested in German economic interests, has performed unprecedented monetary policy in recent months. Investors should see this as an opportunity, with the DAX currently trading at value. DAX Futures Long-Term Outlook Investors Notes:
- The DAX has climbed 26% this year yet still looks like a strong, value investment.
- German stocks are likely to add 10% in 2014 on strengthening exports combined with an increase in domestic consumption according to the German Chambers of Commerce and Industry.
- The DAX is expected to move above the 10,000 level, as German electronics companies including Siemens, SAP and Deutsche Telecom have been strong performers this year and this trend is set to continue.
- 50 day, 100 day and 200 day moving averages (MA) are rising indicating a long-term uptrend, including a bullish crossover of the 20 day MA over the 50 day MA, with prices moving above all moving averages.
- Banc De Binary analysts predict that German economy will continue to strengthen, indicating a potential long-term upward movement in the DAX Futures.